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Eagle Sports Supply has the following financial statements. Assume that Eagles assets are proportional to its sales. INCOME STATEMENT, 2019 Sales $ 1,200 Costs 230

Eagle Sports Supply has the following financial statements. Assume that Eagles assets are proportional to its sales.

INCOME STATEMENT, 2019
Sales $ 1,200
Costs 230
Interest 40
Taxes 180
Net income $ 750

BALANCE SHEET, YEAR-END
2018 2019 2018 2019
Assets $ 3,300 $ 3,600 Debt $ 1,500 $ 1,600
Equity 1,800 2,000
Total $ 3,300 $ 3,600 Total $ 3,300 $ 3,600

a. Find Eagles required external funds if it maintains a dividend payout ratio of 50% and plans a growth rate of 20% in 2020. (Do not round intermediate calculations. Round your answer to 2 decimal places.)

b. If Eagle chooses not to issue new shares of stock, what variable must be the balancing item?

c. What will be the value of this balancing item? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

d. Now suppose that the firm plans instead to increase long-term debt only to $1,700 and does not wish to issue any new shares of stock. What is now the balancing item?

e. What will be the value of this new balancing item? (Do not round intermediate calculations. Round your answer to the nearest whole number.)

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